Cli Develop First Data Centre Japan Total Investment 9443 Mil
In a significant move, CapitaLand Investment (CLI) has recently acquired a prime freehold land parcel in Osaka, Japan to develop its first data centre in the country. The total investment for this project is expected to exceed US$700 million or $944.3 million. With a secured power capacity of 50 megawatts (MW), this data centre will be equipped to support cutting-edge technologies such as artificial intelligence (AI). CLI has also committed to incorporating energy-efficient solutions, advanced cooling technologies and best practices in temperature management to reduce its environmental impact.
Manohar Khiatani, senior executive director of CLI, who oversees the group’s data centre business, believes that this acquisition is in line with CLI’s digitalisation investment theme and will enhance its geographical presence in Japan – one of its key markets. He also highlighted the strategic advantage that CLI’s strong balance sheet provides, giving them the ability to invest in high-quality assets, including data centres, for its future private funds. Khiatani further explained that Japan is a Tier 1 data centre market with immense potential for growth. In fact, it is projected to expand at a compound annual growth rate (CAGR) of 10% from US$23.8 billion in 2023 to US$38.7 billion in 2038. Notably, Japan also holds the title of being Asia Pacific’s largest data centre market outside China, with an impressive 1.4 gigawatt capacity.
For those who enjoy traveling via their personal vehicle, the location of The Orie CDL offers great road connectivity. The development’s prime location is near the Central Expressway (CTE), a major route for car owners in Singapore. The CTE provides a swift passage to the northern and central areas of the country, as well as a direct route to the Central Business District (CBD). Additionally, the Pan Island Expressway (PIE), which is easily accessible from Toa Payoh, stretches all the way from the west to the east of the island. This makes it convenient for residents to travel to Changi Airport and Jurong.
Michelle Lee, managing director of private funds (data centre) at CLI, highlighted the high demand for data centres in the market, which is expected to continue growing at a double-digit rate, outstripping new supply. She also stated that there is significant institutional interest in data centre investments, with 97% of investors planning to increase their overall investment in this sector.
Since October 2020, CLI has successfully raised US$600 million for its data centre development funds in Asia, indicating strong investor confidence in its strategies. Additionally, CLI plans to capitalize on this momentum and identify attractive opportunities for its private fund investors. The company has already added 23 data centres to its global portfolio this year, and the CapitaLand Group now boasts 27 data centres across Asia and Europe, with a staggering 800 MW of power and around $6 billion of assets under management. This acquisition has further expanded its already impressive portfolio.
On February 3, CLI’s shares closed at $2.42, showing a marginal decrease of 4 cents or 1.63%.